The New Nation - Internet Edition

BBC Online

Former Pakistani Prime Minister Benazir Bhuto has said that talks on a power-sharing deal with President Pervez Musharraf are "totally stalled".

Speaking in London, she said reports that corruption charges against her had been dropped were "disinformation".

Ministers said on Tuesday that an amnesty deal was about to be announced.

The self-exiled Ms Bhuto has pledged to return to Pakistan on 18 October. President Musharraf looks certain to be elected for a new term on Saturday.

A deal as appeared close on a number of occasions in recent months but nothing has been finalised as the two rivals try to gain the upper hand in negotiations.

Bhuto made her remarks as she arrived for talks with officials of her Pakistan People's Party (PPP) in London.

I am afraid we are heading for a situation which could lead to street agitation Benazir Bhuto "It's absolutely wrong, the news the corruption charges have been dropped," she said.

"He [Gen Musharraf] is not prepared to give a level playing-field. We want to see Pakistan move from dictatorship towards democracy.

"This is just a typical disinformation campaign by the present regime.

"The longer the military regime continues in this fashion, the more anarchic the situation becomes."

Ms Bhuto, who denies the allegations of corruption, has lived abroad since well before Gen Musharraf seized power in a coup in 1999.

She has been one of his sternest critics, but is now a possible future ally as he looks for parliamentary support for a new term in office.

Suggestions from the government that it was near to meeting one of Ms Bhuto's key demands came after she threatened to join a parliamentary boycot being observed by other opposition parties in protest at Saturday's election.

The BBC's Barbara Plet in Islamabad said the government's announcement that it was close to finalising an agreement to drop corruption cases against her was perhaps aimed at preventing that

Pakistan has faced growing political and security instability in recent months.

The PPP is the biggest party in Pakistan. Observers say Gen Musharraf wants a power-sharing agreement with the PPP to give him more popular support

But Ms Bhuto has been insisting that the president gives up his power to sack the prime minister.

She also wants the repeal of a law banning anyone from being prime minister for more that two terms. She and political rival Nawaz Sharif have both been prime minister twice.

He returned to Pakistan in August but was promptly deported to Saudi Arabia. Ms Bhuto says she will return to lead her party in general elections due by mid-January.

Pakistan's president is elected indirectly by parliament and the four provincial assemblies. Gen Musharraf's supporters say they are confident he has the support to win another term.

Opposition resignations aimed at undermining the credibility of the ballot make victory for the president even more certain, observers say.

Meanwhile, judges in the Supreme Court are continuing to hear petitions challenging the president's right to stand for election while still army chief